Illinois Real Estate Exam Practice Question
A purchase money note need NOT contain the
Correct Answer: C
Rationale: A purchase money note typically requires essential details to ensure clarity and enforceability. The rate of interest (A), time and method of payment (B), and principal amount of the loan (D) are critical components that define the financial terms of the agreement. However, the loan-to-value ratio (C) is not a necessary element in the note itself; it is more relevant for assessing risk and determining financing terms rather than being a contractual obligation. Thus, while the other options are fundamental to the note, the loan-to-value ratio is not required.
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